Curro set for a R1.5 billion expansion

One of Curro's schools in Century City, Cape Town. PHOTO: Property Wheel

In the group’s interim results for the six months ended 30 June 2014, Curro stated that it plans to expand its existing facilities, land banking, the development of new campuses and acquisitions.

“Curro educates 28,899 learners. However, we still remain small in the wider education market of South Africa that has around 12.5 million learners. This serves as a source of inspiration to the group for growth in the years ahead,” said [DATA COH:Curro Holdings Limited] in a statement.

In addition to its current 32 campuses in operation, the company is in the process of developing four traditional campuses, two Meridian campuses through its subsidiary, Campus and Property Management Company, two Academy campuses and three Castle campuses.

The company said that its balance sheet was strengthened by a successful 589 million rand rights offer concluded in June 2014, which included a 125 million rand five-year bond issue and a 188 million rand in fixed term funding for its Meridian businesses.

For the period, Curro’s revenue has increased by 54 per cent from 315.6 million rand to 487.2 million rand while earnings before interest, taxes, depreciation, and amortization (EBITDA) rose dramatically by 89 per cent from 51.3 million rand to 96.7 million rand.

Headlines earnings also improved significantly by 95 per cent from 14.2 million rand to 27.3 million rand with earnings per share increasing by 73 per cent and headline earnings per share by 76 per cent, both to 9 cents per share.

No dividends were declared for the period.

“As a result of the proven demand for the variety of schools that is being offered by Curro, the company should, by year end, achieve its pre-listing statement target of 40 schools. This is five years ahead of the company's initial schedule. Curro also remains on track to achieve its revised target of 80 schools by 2020,” concluded the company in a statement.